Up and Away? Bitcoin Price Eyes $8,000 Or Higher

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Bitcoin is still looking upwards, having achieved fresh record highs overnight.

As per CoinDesk’s Bitcoin Price Index (BPI), the world’s largest cryptocurrency by market capitalization rose to an all-time high of $7,990 at 01:18 UTC. As of writing, bitcoin is trading at around $7,850.

According to CoinMarketCap, the cryptocurrency has gained 4 percent in the last 24 hours. Week-on-week, the BTC value has gone up by 12 percent, while on a monthly basis, it is up 39 percent.

The cryptocurrency has staged a remarkable “V” shaped recovery from the last week’s lows near $5,500, but will the rise and rise of bitcoin continue?

As noted yesterday, the investor community appears to be warming up to the idea of moving money out of equities and bonds and into bitcoin – sentiment arising from CME Group’s upcoming bitcoin futures listing.

The price action analysis suggests bitcoin now has the potential to rise well beyond the $8,000 mark, although there is merit in being only cautiously bullish.

Bitcoin chart

The above chart shows:

The rally to record highs is backed by a rise in trading volumes. A high volume rally is a sign that the trend has legs

However, the money flow index (MFI), which uses both price and volume to measure buying/selling pressure, doesn’t reflect the “V” shaped recovery and remains flat. A bearish price-MFI divergence would be confirmed if bitcoin closes today on a weak note.

The relative strength index (RSI) is well short of the overbought territory, thus there is scope for a further rally in bitcoin. However, again, a bearish divergence would be confirmed if bitcoin ends today with losses.

4-hour chart

There are no signs of stress on the above chart, except for the overbought nature of the MFI and RSI.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.